Sims Company began operations on January 1. Its cost and sales information for this year follow. $40 per unit $ 60 per unit $30 per unit $7,350,000 per year $ 11 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. wwwwww $4,750,000 per year 105,000 units 75,000 units $360 per unit

Sims Company began operations on January 1. Its cost and sales information for this year follow. $40 per unit $ 60 per unit $30 per unit $7,350,000 per year $ 11 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. wwwwww $4,750,000 per year 105,000 units 75,000 units $360 per unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare an absorption-costing income statement for last year. Round to nearest whole number.
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Trio Company reports the following information for its first year of operations. Direct materials $ 18 per unit Direct labor $ 19 per unit Variable overhead $ 7 per unit Fixed overhead $ 221,650 per year Units produced 20,150 units Units sold 15,500 units Ending finished goods inventory 4,650 units Assume instead that Trio Company uses variable costing.1. Compute the product cost per unit using variable costing.2. Determine the cost of ending finished goods inventory using variable costing.3. Determine the cost of goods sold using variable costing.
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Subject: accounting
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